Transcription
So, the PDT rule is going away on June 4th. I'm very excited about this. This has been going on for 20 plus years.
When I first got started, there was no PDT rule. I want to say that it got started either in 2000 or 2001, but it was after I made the majority of my my first big win, so I was way over 25,000. For those of you who don't know, the PDT rule limited people to three day trades per five rolling day period if you have less than $25,000 in your account. You're very limited. I Obviously, you can do an overnight trade every day, but overnight trades are a little riskier. Many newbies, they're not really prepared for that overnight risk.
I'm fine with it, but I think in the beginning, you do need to trade more. I've gone back and forth on the subject. You know, in the past, I was like, "I hate the PDT rule. This is un-American. Screw the SEC. This sucks." Then, as I got further along into my teaching career, I was like, "This is good. You need to protect the newbies from themselves. If they just trade all day, they'll trade this and trade that and trade this and trade that, they're usually going to lose."
It doesn't really matter what I think. It doesn't matter what you think. The the rule is going away. What does it actually mean for you? What does it mean for trading? Well, anybody under $25,000, now you have a lot more freedom to trade however you want, but obviously, like Spider-Man teaches, with great power comes great responsibility. And I don't think many people with less than $25,000 understand quality over quantity in their trading. So, I think a lot of the unprepared traders are going to churn and burn their accounts faster than ever before. And I think that they're going to miss the PDT rule because they're going to be like, "Oh, I would I used to be protected from myself." And they don't even realize it yet because they're just newbies, but I think that's what's going to happen.
I think my business as a teacher is going to boom because a lot of these newbies who previously didn't think that they had to invest in their education, they didn't necessarily see all the opportunity or the upside with trading properly. I think when they lose more, they're going to be like, "Oh, damn, I wish I had learned the lessons. I wish I had learned rules." And they're going to start Googling and they're going to find me and my 50-plus millionaire students. So, it's going to be good for me.
It's going to be very good for the markets and trading as a whole because a lot of people are going to enter into the market now with new accounts. They're going to be like, "Okay, now I can trade more." Cuz in the past, some people like did not open trading accounts, they did not invest into their trading education cuz it wasn't worth it. Cuz they're like, "Oh, I'm under the PDT rule. I can't trade that much. It's just not worth it." So, they used it as an excuse. So, now you're going to have a whole new group of people coming in wanting to trade. And again, most of them will churn and burn their account. It's going to be like, "How to light your dollars on fire with untrained newbies." Unfortunately, you got to be real about it, right? Like, most traders lose and newbies, by and large, lose the most because they just don't have the proper mindset, they don't have the proper training. This is why I teach and I'm very proud to try to save newbies from themselves. They don't even understand it. Some of them are like, "Why are you so mean? Why is it all about these rules? You don't understand." And I'm like, "Look, I don't I don't make the rules. I literally don't make the rules. I learned the rules the hard way myself once upon a time. You can follow the rules or not. I'm just the messenger." Got losses quickly. Got losses quickly. Got losses quickly.
You'll have newbies losing more, you'll have more people coming into the market, but I think the best thing for all of us is that it's going to create a lot more liquidity and a lot more volatility because people with less than $25,000, they're naturally going to gravitate towards lower price stocks, penny stocks, micro caps, small caps, my kinds of stocks. You're going to have a huge influx of new traders. And, you know, again, like there's a lot of these these chat rooms where they're they're quote free, and they don't realize that it's like one guy or a small group of people pumping up low float stocks and selling within seconds to their quote free chat room, and their chat room is like time delayed, too, in case you didn't know. So, everyone's like, "Oh, it's free. It's free." And they don't realize they're just being used by these unethical chat room leaders. It's going to create more volatility, more liquidity. I think that a lot of these stocks that we've already seen going from like $0.50 to $5 or like $1 to $10 in a few hours, we're going to see even more extreme moves. So, it's going to be good for me. It's going to be good for you if you're watching this, like at least you can be prepared. I think it's going to be like an onslaught. I was looking forward to a slower summer. R.I.P. to my slow summers. You know, last summer was crazy, the summer before was crazy. I go to Italy every summer, and I usually bring like my millionaire students over. Last year, I think we had, I'm going to say like 40 or 50 of my millionaire students out there at various times. There was one thing where like I have a villa, and then we had so many students in town, I had to rent four villas, which was crazy. That was That was a little too much. This year, I'll probably have less cuz I don't want to stress myself out that way.
But, because this rule is going away in June, and you know, many people have heard about it, but I don't think they necessarily acted on it. Maybe they're waiting till June to open their accounts, but it will get pressed in June when the rule is gone, and you'll start seeing more and more volatile stocks. I think that's going to get pressed, and I think by like July and August, it's just going to be pandemonium. We have to like watch out for our sleep and our health because especially now, you might not remember this, but when I first got started 20-plus years ago, there was no pre-market trading. There was no after-hours trading. There was no 4:00 a.m., 5:00 a.m., 6:00 a.m., 7:00 a.m. runners. There was 9:30 to 10:30 a.m., the first hour of the trading day, and then a lot of choppiness, and then the last hour of the trading day, 3:00 to 4:00 p.m. So, you had 2-hour increments. That's it. For the whole trading day, that's where the vast majority of the good plays are. Now, there's literally 4:00 a.m. to 8:00 a.m. runners, 8:00 a.m. to 9:30 runners, 9:30 to 11:00 a.m. runners, and sometimes you know, morning spikes or morning panics. You have midday squeezes, you have afternoon breakouts, and after-hours runners. My previous 2-hour window has now become 16 hours. And I I know that some brokers are like 24/5. I'm sure some brokers are going to go 24/7. >> [sighs and gasps] >> RIP to my sleep. RIP to everybody's sleep. We're going to have to be okay with missing plays. We're going to have to be okay with, you know, just waking up and and not not being happy.
I I remember this from last winter when all the quantum plays were spiking. And I was in Japan. I like bringing my students to the other side of the world to see the the charity projects that we do in Bali, and then I love Japanese culture, so I show them all over Japan. I'm pretty connected there. And I remember I was sick in Japan because I you know, I I'm literally showing everybody around and being tour guide during the day to my millionaire students. At night, I'm trading cuz the stock market is open at night there. And I was so sick. And I remember this not this last December, two Decembers ago, and LAES was like this wannabe quantum play, and it was spiking. I want to say it was up like 40% or 50% on the day, and I was in it, and I was like, "Wow, this has legs. This is the first green day. Quantum is hot. This is a low-price play." But I I literally was like coughing and sneezing. Like, I remember sneezing on my laptop, and I was like, "Oh god, I got to go to sleep." And I I was still up till like 2:00 or 3:00 in the morning, but I needed sleep. And so, I went to bed, I think around like 2:00 2:15 a.m. Tokyo time, and I I got out of the stock. I think I had like a small gain or a small loss, but it wasn't breaking out the way that I wanted. And by the time I woke up like 6 hours later, the stock had like doubled. And I just yelled so loudly, and I was so pissed, but like literally I was sick. So, I was sick. I didn't get better for a while because I was pushing myself too much, and I didn't get the profits because I couldn't stay up all night. So, that was bad timing for me.
That's what I think is going to happen with this no PDT rule. There's going to be plays. Already there's plays 4:00 to 8:00 a.m. There's going to be more plays 4:00 to 8:00 a.m. There's going to be more plays at all hours of the day. So, you have to really try not to get sick. You have to protect your sleep. I don't know if I'm going to be going to Asia as much. You know, we're still opening more and more schools. I'm trying to finish this documentary that I did on all of our schools in Bali. At the same time, like I really think it's going to be pandemonium. I don't want to make any specific guesses. I don't want to be like it's guaranteed to be like a 2020 2021 market again. I think it could be 2020 2021. Let's not forget a lot of the the penny stocks and the cryptos and the NFTs were inflated by people being home. So, there was more people who could trade, and you know, you had the stimulus checks of just a few thousand dollars. So, those were two big things that really boomed the whole market. Will that happen again now to end 2026? It could. People aren't necessarily all at home. I don't know how many people this PDT rule applies to. I mean, this is only for Americans. It's a very small I mean, it's not small, but it's it's not the whole world, right? It's small compared to the the total number of people in the world. I still think this is going to open the floodgates up specifically to penny stocks and microcaps and smallcaps. So, we'll see, you know, I just wanted to make this video just to prepare you to help you understand that this summer probably will not be slow. I'm still going to Italy. I'm still bringing a lot of my newest millionaire students. I'm excited for it. But at the same time, I have a feeling there's going to be a lot of plays and you just have to try to be ready.
Try to choose the proper broker. You know, I know some brokers aren't letting people trade penny stocks, specific stocks these days. I see people using WeBull and WeBull has like these risk controls and like Fidelity. I'm using Sage Trader right now. Sage Trader is my favorite new broker. I'm testing out a whole bunch of new brokers, but so far Sage has been my favorite mainly just because they allow you to trade a lot of these stocks. Like a lot of these companies, they've clamped down on the risk metrics and when you have these volatile penny stocks that are up, you know, 50, 100, 200, 500, 1,000% on the day, it blows away the risk metrics for a lot of these companies. I'm sure WeBull would love to, you know, trade them, but their risk metrics don't tolerate it. So, when I see when when I'm trading like a big percent gainer and like I'm nailing it for 10, 15, 20% cuz I'd like to take singles and I see a lot of people in my chat room, they can't trade it because WeBull, they have accounts there, doesn't allow it. So, have the right broker. I'm personally using Sage right now. I like what they're doing. I still have an Interactive Brokers account. E*TRADE has just gone from bad to worse. Don't even get me started. I was an E*TRADE customer for 20-plus years. Very sad what what happens. But, you know, these companies get taken over and their quality goes way down.
For me, I'm mentally ready. I'm going to try to be physically ready. I'm prepared with the right broker. I have to be okay with missing plays cuz again, I I need sleep and I don't want to get sick. You can't trade anything if you're just like trying to trade everything. I know that some people do try to trade all different hours of the day. I myself am an over trader, so I have this problem, too. You got to be focused on quality over quantity. There's going to be more plays, but there's also going to be a lot more volatility. Like lately in April of 2026, we've seen a lot of big intraday spikers, and then by the end of the day, they've lost half or most of their gains. So, don't be afraid to lock in gains quicker. It's going to be very good for traders who are very meticulous and they're they're trading like a sniper. I love taking gains along the way. I don't mind if I sell too soon. But, I'm excited for the PDT rule to go away. Leave a comment below. You tell me what your thoughts are. Let's get some some useful dialogue. And remember, June is when it's supposed to happen, June 2026, and I think that's really going to lead to a crazy crazy second half of June, and July, and August. You know, we'll see what happens in the fall, too. September and October are historically the two months that have the most crashes in history.
I would venture to think, going back to what I was saying in the beginning, where if if these newbies now have no chains on their accounts, so they're free, and they're just going to be like dumb newbies, the majority of them, where they're just going to over trade and churn and burn, it wouldn't surprise me if they make a lot of money in June, July, August, and then like September, October, if we get a big crash or, you know, even a little crash and the newbies are unprepared, any money that they make during the summer is going to be gone. If you're a newbie who's seeing this video for the first time, click some links below. I'll include a bunch of free videos and free guides so that you can learn risk management, and you can learn to prepare. And also, I'll include a quiz. My team and I made this quiz, too, which is pretty cool, so that you can see where you are in your trading journey. You got to get very introspective. You got to get very blunt. Don't be like some of these short sellers who have blown up or lost a lot of money or at least risk losing a lot of money and they don't talk about it publicly because they don't want anyone to know how bad their strategy is or how risky it is. Short sellers I say are the new promoters because they're just not telling people the whole truth and I know a lot of the biggest short sellers have blown up. I'm not here to create drama, but just know that short sellers are shady AF and we must be grateful for that shadiness because they spike stocks further and faster than promoters ever did. But get ready for no PDT rule, you got to get very introspective, you got to be very blunt, you got to get very prepared. That's why I'm making this video now. Let's crush it.